Del Monte sinks into the red with $27.8m net loss

The company is trying to regain market share.

Del Monte Pacific Limited (DMPL) recently announced that it had achieved 1Q15 revenue of US$446m, of which, US$340m came from Del Monte Foods International’s (DMFI).

A report by OSK-DMG indicates that the group has a net loss of US$22m mainly due to a non-recurring US$10 m net of tax upward revaluation of inventory and US$7m higher interest expenses from the acquisition loan.

While DMFI sales was down 1%, affected by higher product pricing and changes to product labels, corrective measures such as price adjustments and promotional campaigns have been taken to regain market share.

The group will also be embarking on cost savings measures to improve gross margins in FY16 and beyond. In Asia, Del Monte and S&W branded business continue to deliver strong set of results with y-o-y sales growth of 7% and 24% respectively.